Retirement destinations

While preparing a retirement plan for a couple a while back, I asked how long they planned to live in their current house. The husband said he would like to stay there as long as health allowed, about another 20 years, but his wife declared she wanted to move in three or four years.

Whether, when and where to move to are crucial aspects of retirement. We've all seen people retire to spots they thought were idyllic, only to get there and realize they miss their family or friends or the activities that had surrounded their working lives, or that it's just too expensive for a retirement budget.

Conversely, there's the chance that in retirement you'll find having 25C weather with no rain every day boring, that constant company with only your spouse or partner is stressful, or that you're just a lousy golfer no matter how many times a week you play.

While there are some things in retirement you'll have little control over, such as health, there will be other aspects you can prepare for in advance, by developing common interests with your partner and a plan to finance them.

A number of studies have been done about retirement destinations. EscapeArtist.com concluded that the best place in the world to retire in is Ecuador, mentioning Quito as "a well-preserved colonial city where you can enjoy a gourmet meal in a French restaurant, play golf on courses so free of crowds that you don't have to make tee times, and a climate that's (25 C) all year."

The country went through recovery and reform after a spate of economic, political and natural calamities, and a new beachfront home in the popular resort area of Punta Blanca goes for $40,000. Foreigners are greeted by no income or corporate taxes or foreign-exchange controls, and local residents welcome outsiders.

In the United States, AARP magazine examined retirement sites based on income, property and sales tax, weather and recreational opportunities. Its top five places to retire to in the U.S. are Atlanta, Ga.; Portland, Ore.; Chandler, Ariz.; Boston, Mass.; and Milwaukee, Wis.

The magazine's website, www.aarpmagazine.org, also offers a tool called Location Scout, which asks a series of questions about your retirement preferences for climate, housing, work and money, arts, culture and lifestyle, recreation, transportation, health and education. Questions range from how important is having Internet access, to having a hockey team in the area.

Based on my answers, it said my best place to retire in the U.S. would be Worcester, Mass., followed by Boston-Quincy, Mass. Who knew?

Money magazine also ran a story on the best places to retire, and its top pick was Coeur d'Alene, Idaho, which offers skiing, lots of golf and a growing population.

Some U.S. states are actively recruiting retirees, such as New Hampshire, which has a Free State Project trying to get 20,000 people to move there because it has no state income tax and no general sales tax.

Furthermore, you can avoid paying state income taxes on retirement fund withdrawals in Alaska, Florida, Hawaii, Nevada, South Dakota, Texas, Washington and Wyoming. Meanwhile, New Hampshire and Tennessee charge tax only on dividends and interest income.

Canadian Business magazine also ran a report on top places to retire in, with former California State University professor Warren Bland looking at Canada and the U.S., using criteria including landscape, climate, cost of living, transportation, crime and health care.

His top five places for retirement were Victoria, B.C.; Boulder, Col.; London, Ont.; Portland, Ore.; and San Antonio, Tex. Other Canadian places in the top 20 were Halifax, Stratford, Ont. and Kingston, Ont.

Of course, before asking where to retire to, the question is whether to move at all.

The AARP magazine quotes a U.S. Census Bureau report saying fewer than five per cent of people 55 and older move in any given year, and only 25 per cent of those moved to a new state, with the major reason given as wanting to be closer to family.

In Canada, the department of Foreign Affairs and International Trade says most retirees stay in the country, but many move to smaller regional centres.

However, as Canadians increasingly come from other parts of the world, family and cultural ties are luring people to retire in Lebanon, United Kingdom, France and Germany. It says the other main reasons people retire abroad is for low after-tax living costs and a warm climate, but these people often face cultural isolation.

It's suggested you visit the place you're considering moving to at different times of the year beforehand.

TOP 10:

EscapeArtist.com concluded the best places in the world to retire are:

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